Hi @Angela46,
As far as I know, you cannot give a guest an "official" credit but you can refund. What you might find confusing is that people offer to give them a certain amount if they book with them again in the future. For example, let's say I have a moderate cancellation policy and a person cancels and they receive half their money back but they forfeit $200. I could offer to take $200 off a future stay and when/if they request a future date, I could make them a special offer and subtract $200 from the total.
I will not get into why you are not holding them to the cancellation policy they agreed to especially after this is their second cancellation.
Good luck @Angela46!
Dave
David
Superhost Ambassador ~ Host Club Community Leader ~ Experienced Co-Host